Fraudulent behavior and false advice in insurance should be strictly prohibited.

On the morning of November 3, discussing at Group 6 on the draft Law amending and supplementing a number of articles of the Law on Insurance Business, National Assembly Deputy Pham Trong Nghia (Lang Son) expressed his agreement with the goal of reducing business conditions and simplifying administrative procedures; at the same time, he proposed to add regulations to protect people's rights and improve management efficiency, especially prohibiting fraudulent acts in insurance consulting.

Continue to review, cut procedures and promote transformation

Basically agreeing with the amendment and supplementation of a number of articles of the Law on Insurance Business to reduce investment and business conditions, simplify administrative procedures, reduce compliance time and costs for people and businesses, and at the same time remove a number of difficulties and obstacles in the process of implementing the Law on Insurance Business in 2022, but National Assembly Deputy Pham Trong Nghia suggested that the Drafting Committee should continue to review and revise a number of articles and clauses accordingly.

National Assembly Deputy Pham Trong Nghia ( Lang Son ) speaks. Photo: Ho Long

Specifically, the draft Law is amended in the direction that from January 1, 2028 to December 31, 2030, the risk-based capital model and Solvency Margin I will be applied in parallel; from January 1, 2031 onwards, only the Risk-based Capital model will be applied. Regarding this issue, delegates said that during the parallel application period, enterprises will only increase capital if they do not meet the current regulations on Solvency Margin I and do not have to apply intervention measures according to the new regulations. The parallel application for 3 years creates conditions for enterprises to get acquainted, have a stepping stone to prepare more thoroughly in terms of resources, information database, have a business plan, and a capital increase roadmap suitable for their scale, development speed, and product strategy.

From that reality, delegate Pham Trong Nghia proposed adding content on information technology application and digital transformation in the draft Law.

Regarding the goal of reducing business investment conditions and simplifying administrative procedures, the delegate emphasized: according to the Government's Report, the draft has reduced 22 business conditions and simplified 3 administrative procedures, the total number of business conditions to be reduced is expected to reach nearly 31%. However, according to the delegate, compared with the Prime Minister 's goal, due to the proposal that the Drafting Committee continue to review and cut unnecessary procedures so that the Law project achieves the highest feasibility and efficiency.

Fraudulent behavior in consulting and concealing the provision of insurance information is strictly prohibited.

Emphasizing the need to strengthen control of violations in insurance business activities (Article 9), National Assembly Deputy Pham Trong Nghia said that according to people's reflections on mass media, there is a situation where savings deposits at joint stock commercial banks are "transformed" into other unwanted financial products (typically life insurance), causing public outrage and affecting the general security and order situation.

Discussion scene of Group 6. Photo: Ho Long

The target customers that bank employees and insurance company employees are usually middle-aged, elderly, and people who lack knowledge and understanding of legal regulations. Common violations are: not directly advising customers or not fully guiding the procedures during the implementation of the process, procedures and required documents according to the regulations of the insurance company; banks do not guarantee the quality of advice on insurance products, leading to customers not clearly understanding these products but trustingly signing contracts for "investment linkage, buying and selling of bonds, stocks, investment, buying and selling of insurance" , but still thinking that they are saving and enjoying high interest rates with health protection benefits.

According to the delegate, the cause of this situation is partly due to the "intentional" misleading, dishonest, and "ambiguous" advice on the concepts of financial products (insurance, bond investment, savings investment...) by bank and insurance company employees with the aim of increasing revenue (KPI), personal targets...

Based on that reality, National Assembly Deputy Pham Trong Nghia proposed to add to Article 9 of the draft Law the content: "Strictly prohibiting fraudulent acts in consulting, false consulting, and concealment in providing insurance information" to protect the legitimate rights of the people.

Source: https://daibieunhandan.vn/can-nghiem-cam-hanh-vi-gian-doi-tu-van-sai-lech-trong-bao-hiem-10394126.html